Even as the tussle between Coal India ltd (CIl) and National Thermal Power Corporation ltd (NTPC) intensifies over inking of fuel supply agreements (FSAs) with none of the entities refusing to budge from their defined positions, the Coal Minister Sriprakash Jaiswal on Friday chose to assure that despite the logjam, at least 50 per cent supply to the power company would continue for the time being.
Jaiswal’s comments come in the backdrop of NTPC lowering power generation while blaming the poor quality coal being supplied by CIl, a move which may lead to a severe power crisis across the country during the ensuing summer season.
“The supply (of coal by CIl to NTPC) has not been discontinued. CIl had taken a decision. But the instructions have been sent by our ministry (to CIl) that for the time being at least 50 per cent of supply should continue,” Jaiswal said when asked about switching off supply to NTPC on the sidelines of an Assocham function.
An NTPC spokesperson said, “partial supply of coal at the power stations has started and generation will pick up gradually.”
Meanwhile as per the Coal Ministry, NTPC has outstanding dues worth over Rs 2,200 crore, as on March, this year, to Coal India.
Jaiswal said that talks with NTPC are on and the dues will be recovered.
On quality of coal being supplied to NTPC, Jaiswal said, “we are ready for third party inspection (of coal) but at the loading point ... But we are not ready for third party inspection at receiving point (of coal).”
He added that there are some issues related to FSAs which would soon be resolved.
Power Secretary P Uma Shankar had also said that his ministry and Coal ministry should be able to solve the problem amicably.
Coal Secretary S K Srivastava while speaking to reporters on the sidelines of the same function, said that CIl supplies whatever quality of dry fuel is extracted from the mines.
NTPC has claimed that its power plants require coal of minimum 3,100 kilocalories but what Coal India is supplying is about 2,100 kilocalories. The company has said it impacts the equipment used in the plant.
The Prime Minister’s Office has been pushing CIl to sign FSAs for supply of a minimum threshold of coal to power producers which is at 80 per cent, but NTPC feels that CIl, which is the world’s largest coal producer has been supplying “rocks and boulders” to it just to meet its supply commitment.